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Lodging proposal has small-hotel owners crying foul

By CRISTINA SILVA
Published January 5, 2007

ST. PETE BEACH - City officials are considering a proposal that would allow for construction of tourism lodging in a 1-mile area along Gulf Boulevard, while restricting similar projects elsewhere in the city.

The rezoning of St. Pete Beach's major commercial neighborhoods has been characterized by the City Commission as a necessary change in order to create a tourism center that will help boost the local economy and quell condominium overdevelopment. The plan calls for 12-story hotel resorts along the beach.

But owners of small hotels say the proposal would significantly reduce their property value and make it difficult for them to rebuild their businesses if the structures were destroyed in a storm.

The conflict represents the city's ongoing struggle over whether large, towering hotels are better suited for its economic needs instead of the small businesses that now dot St. Pete Beach.

"Basically, they are telling us, 'Your business isn't important to the city,' " said Leslie Hughes, owner of the Sun-Dial Motel on Sunset Way, who is considering a lawsuit against the city if her land is rezoned.

City Manager Mike Bonfield said the city only wants to strengthen an area already dominated by large hotels.

St. Pete Beach cannot increase its overall number of tourism lodging units because of state statute. If the city wants to provide an incentive to large hotel developers, it must transfer the number of transient lodgings that can be built from most areas of the city into the hotel district, he said.

"The goal has always been to try to create an environment where hotel development can compete equally with residential development," Bonfield said.

While the city is considering creating a pool of 800 transient units so hotel and motel developers outside of what will be called the large resort district could build tourist lodging, owners of small hotels say they don't like the idea of having to apply for what they already get in the city's current development plan.

If the proposed development plan were to pass, and Hughes were to raze her property to try to build a new structure, she would not be able to build any tourism lodging on her land unless she won some units in the lottery.

"It's just really a slap in the face," she said. "We want something in writing that says you can rebuild what you have, or if you sell your property the next owner can rebuild what you have. That is not greed."

The city is considering eventually allowing businesses to grandfather in property rights, meaning that in the future they would be able to rebuild the exact number of units on the land as when it was first constructed. But that proposal is still in the early stages and would have to be approved by the state.

The city has been working on a new development plan since 2002, but has been unable to come up with a solution favorable to a majority of residents. The city is operating under a plan that was created in 1988, and business owners have said that the plan no longer reflects St. Pete Beach's economic needs.

Some hotel owners argued that they did not care about transient units, and simply want more residential units.

Alan Ball, owner of the Serendipity Motel Apartments on Sunset Way, favored the city's redevelopment plan as recently as two weeks ago.

But when Bonfield sent out a memo that called for the pool of 800 units, and reduced the number of residential units property owners like Ball could build, he cried foul. A plan that was repealed by voters in November would have allowed many business owners no transient units, but given them many more residential units.

"I don't understand; one minute they want to encourage investment, the next minute they give you nothing at all," he said. "You have got to be able to make some money."

Cristina Silva can be 893-8846 or csilva@sptimes.com.

[Last modified January 4, 2007, 22:02:36]